ICA, Peru -(Dow Jones)- An expected expansion of electricity demand, tied to rapid economic growth, should boost investment in generating capacity in the Andean nation over the next decade, industry experts say.

Hans Flury, president of the National Society Of Mining, Petroleum and Energy, said that investments in the electricity sector could total $3.4 billion over the next 10 years.

"These projects refer to the amplification of current operating units and the construction of new thermal and hydroelectric projects in order to meet growing demand," he said at a conference this week sponsored by WAAIME, an international group dedicated to promoting women in the mining and energy sectors.

Other experts speaking at the same conference forecast rapidly expanding needs for more electricity production.

Former Energy and Mines Minister Pedro Pablo Kuczynski, who has also held the posts of finance minister and prime minister, said Peru has one of the lowest rates of electricity consumption among the larger nations in South America, especially in Peru's Andes Mountains region.

"The first objective is to have total coverage in all parts of the nation," he said.

Energy and Mines Minister Pedro Sanchez said in a statement late Thursday that by mid-2011 the government hopes to have 92 of each 100 houses in Peru connected to electricity. "In 2006 only 74 of each 100 houses had electricity," he said.

Former Energy and Mines Minister Jaime Quijandria also noted that Peru is expected to have a rapidly growing need for more electricity generating capacity in coming years as the economy continues to expand strongly.

Peru's economy is expected to expand about 7.0% this year, while some economists forecast that it will grow on the order of 6.0% to 7.0% a year in the coming years, boosted in part by demand for many of Peru's natural resources.

Last month, electricity production grew 12.4% to 2,971 gigawatt hours, compared with the same month a year earlier, with about half coming from hydroelectric generators and the other half from thermal generating plants.

The start of operations at the Camisea natural gas fields in mid-2004 has helped boost use of natural gas powered generating plants. Last month, natural gas fired plants produced 37% of Peru's electricity, the Ministry of Energy and Mines said.